The budget’s holistic approach promises inclusive economic growth

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₹1.4 trillion in the previous budget (revised estimate) to an estimated ₹1.47 trillion. Boosting employment and employability was rightly given utmost priority in this year’s budget. The announcement of three employment-linked incentive (ELI) schemes for first-time workers, job creation in manufacturing and support for employers are in line with CII recommendations.

These three schemes, together with a new centrally sponsored scheme and internship opportunity for youth, are expected to support 41 million beneficiaries. Measures to boost tourism with a focus on spiritual and cultural heritage are also expected to spur jobs growth. The strategic focus on MSMEs would strengthen the sector and is welcome.

Tech and financial support to this vital sector are imperatives, as it has significant potential to step up innovation and support inclusive development. The decision to reduce the turnover threshold of buyers for mandatory onboarding on the TReDS (Trade Receivables Discounting System) platform from ₹500 crore to ₹250 crore is laudable. Further, the introduction of an assessment model for credit based on one’s digital footprint, a new mechanism to provide financial support during stress periods and the enhancement of the loan limit under the Mudra scheme, along with a slew of other measures, will stimulate the MSME sector.

The setting up of e-commerce export hubs through the public-private partnership approach will enable internationalization of MSMEs. Infrastructure continued to be a core budget focus. The government’s announcement to provide long-term interest-free loans to states to the tune of ₹1.5 lakh crore for developing infrastructure will attract investments and boost job creation.